Why is my electric bill so high?

A doubled bill usually means two things happened at once: a rate increase took effect (California utilities have filed repeated increases in recent years) and your usage rose — summer AC, guests, a new EV, or a shifted time-of-use window billing your evening usage at peak prices. Check your bill's rate-per-kWh against last year's: in many cases the rate, not your behavior, did most of the doubling.

It's one growing force among several — and we'd rather be precise than dramatic. Data centers used about 4.4% of U.S. electricity in 2023, and a federal (LBNL) report projects 6.7%–12% by 2028. In the largest U.S. grid market (PJM), the price of securing future capacity jumped roughly nine-fold in the 2025/26 auction, and the market monitor named data-center load as a direct cause. In California there is no precise figure yet for how much AI adds to household bills, and new 2026 state laws aim to make data centers pay for their own grid upgrades. AI didn't start the rise in your bill — but it adds sustained upward pressure on demand.

California's rates are among the nation's highest because ratepayers fund more than power: wildfire mitigation and liability, transmission upgrades, grid maintenance and repair, and public programs are all recovered through rates, on top of general inflation. Add rising demand — including from data centers — and the trajectory has been steadily upward, with utilities filing repeated increases in recent years.

Beyond the statewide drivers, both utilities use tiered or time-of-use pricing, so summer afternoon and evening usage bills at premium rates. LADWP and SCE have each implemented rate adjustments in recent years to fund infrastructure. If your bill spiked without a lifestyle change, compare this year's per-kWh rate to last year's — that's usually where the jump hides.

We won't pretend: the structural drivers point up, not down. Grid expansion for data centers and electrification, wildfire costs, and transmission upgrades all get recovered through rates over decades. That's the honest case for locking in your own generation: solar doesn't bet on rates falling — it makes them largely irrelevant to you.

Short term: shift heavy usage off peak hours, audit always-on loads, and check you're on the best rate plan. Structurally: rooftop solar (with a battery under NEM 3.0) converts your largest variable cost into a fixed one you own. It isn't for everyone — renters and heavily shaded roofs are poor fits — but for most LA homeowners, it's the one lever that removes you from the rate escalator. A free quote will tell you your specific number.